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Sensitivity and scenario analysis
See how profit moves when volume, price and costs change, and which lever matters most.
Finance & unit economicsHow it's worked out
- Profit = units × (price − variable cost) − fixed costs. Lever = profit change from a 1% move
- Costs behave linearly within the range tested
NotePrice is usually the strongest lever. Run downside and upside scenarios, not just a single forecast.
Source: Standard cost-volume-profit analysis (CIMA, management accounting)
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